NiSource (NYSE:NI – Get Free Report) and ENGIE (OTCMKTS:ENGIY – Get Free Report) are both large-cap utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.
Analyst Ratings
This is a summary of recent recommendations for NiSource and ENGIE, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NiSource | 0 | 3 | 7 | 1 | 2.82 |
| ENGIE | 0 | 3 | 4 | 2 | 2.89 |
NiSource presently has a consensus price target of $50.33, suggesting a potential upside of 6.65%. Given NiSource’s higher probable upside, equities research analysts clearly believe NiSource is more favorable than ENGIE.
Institutional & Insider Ownership
Risk and Volatility
NiSource has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, ENGIE has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.
Valuation & Earnings
This table compares NiSource and ENGIE”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NiSource | $6.64 billion | 3.41 | $929.50 million | $2.01 | 23.48 |
| ENGIE | $81.38 billion | 0.96 | $4.33 billion | N/A | N/A |
ENGIE has higher revenue and earnings than NiSource.
Profitability
This table compares NiSource and ENGIE’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NiSource | 14.15% | 8.31% | 2.70% |
| ENGIE | N/A | N/A | N/A |
Dividends
NiSource pays an annual dividend of $1.20 per share and has a dividend yield of 2.5%. ENGIE pays an annual dividend of $0.88 per share and has a dividend yield of 2.9%. NiSource pays out 59.7% of its earnings in the form of a dividend. NiSource has increased its dividend for 14 consecutive years.
Summary
NiSource beats ENGIE on 10 of the 16 factors compared between the two stocks.
About NiSource
NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States. It operates in two segments, Gas Distribution Operations and Electric Operations. The company distributes natural gas to approximately 3.3 million customers through approximately 55,000 miles of distribution main pipeline and the associated individual customer service lines; and 1,000 miles of transmission main pipeline in northern Indiana, Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. It also generates, transmits, and distributes electricity to approximately 0.5 million customers in various counties in the northern part of Indiana, as well as engages in wholesale electric and transmission transactions. It owns and operates coal-fired electric generating stations in Wheatfield and Michigan City; combined cycle gas turbine in West Terre Haute; natural gas generating units in Wheatfield; hydro generating plants in Carroll County and White County; wind generating units in White County, Indiana; and solar generating units in Jasper County and White County. The company was formerly known as NIPSCO Industries, Inc. and changed its name to NiSource Inc. in April 1999. NiSource Inc. was founded in 1847 and is headquartered in Merrillville, Indiana.
About ENGIE
ENGIE SA engages in the power, natural gas, and energy services businesses. It operates through Renewables, Networks, Energy Solutions, FlexGen, Retail, Nuclear, and Others segments. The Renewables segment comprises renewable energy generation activities, including financing, construction, operation, and maintenance of renewable energy facilities using various energy sources, such as hydroelectric, onshore wind, photovoltaic solar, offshore wind, and geothermal. The Networks segment comprises the electricity and gas infrastructure activities and projects, including the management and development of gas and electricity transportation networks and natural gas distribution networks in and outside of Europe, natural gas underground storage in Europe, and regasification infrastructure in France and Chile. The Energy Solutions encompasses the construction and management of decentralized energy networks to produce energy and related services. The FlexGen segment operates flexible thermal generation and electricity, pumping, and battery storage facilities; solutions for decarbonizing industry with low-carbon hydrogen; and financing, construction, and operation of desalination plants. The Retail segment engages in the sale of gas and electricity to professional, individual, and residential clients. The Nuclear segment engages in the nuclear power generation activities. The others segment sells energy to companies and offers energy management services and solutions. The company was formerly known as GDF SUEZ S.A. and changed its name to ENGIE SA in April 2015. The company was founded in 1880 and is headquartered in Courbevoie, France.
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